Prudential plc

Prudential reported first-half 2026 new business profit growth of 8%, EPS growth of 17%, free surplus generation growth of 15%, and an interim dividend per share increase of 15%. Ben Bulmer also said gross OFSG rose 15% year over year and net OFSG rose 41%, while the new business margin expanded to 40% from the prior period. Embedded value per share ex-goodwill was USD 15.27 or GBP 11.50, and return on embedded value was 15%. The free surplus ratio at June 30 was 209%, or 200% excluding remaining net AMC IPO proceeds. Management reaffirmed 2026 guidance for double-digit growth across key financial metrics and reiterated confidence in 2027 objectives; for China, management said full-year 2026 NBP would be similar to full-year 2025 on a CER basis, and for China margin they are working toward about 40% for full year 2026 versus 43% in 2025.

Anil Wadhwani emphasized that Prudential’s multichannel, multi-market model is delivering consistent high-quality growth and that the company is focused on converting new business profit into cash and shareholder returns. He highlighted strong progress in Hong Kong, ASEAN, India, Africa, and asset management, and said transformation efforts in agency, bancassurance, technology, and health/protection are improving the business mix and operating quality. His tone was confident and disciplined, repeatedly stressing execution, capital allocation, and staying on track for 2026 and 2027 goals.

Ben Bulmer focused on the financial mechanics behind the quarter: new business margin improved to 40%, embedded value per share ex-goodwill reached USD 15.27 / GBP 11.50, and ROEV was 15% with scope to improve by 2 to 3 points over time. He said underlyng variances were back in positive territory, helped by stronger claims management, growing revenue premiums, and cost control, and he guided to continuing investment of between $300 million and $350 million in the capability program in 2026. He also said the free surplus ratio was 209% at June 30, the company had launched a combined $1.2 billion buyback in January, expects an additional GBP 0.3 billion from the AMC free-float step, and remains on track to return more than $7 billion of capital to shareholders from 2024 to 2027.

Analysts pressed on whether Hong Kong second-half growth would stay strong, what drove the lower new business strain, and how much of capital from India-related transactions would be returned to shareholders versus reinvested. Management said Hong Kong remains well balanced between domestic and Mainland business, structural demand from Mainland visitors remains strong, and margin gains came from better mix, bancassurance, and agency improvement. On strain, Ben said the improvement reflected a slight product-mix shift toward more capital-efficient par business and some country-mix effects, and suggested continuing to model strain at 11% to 12% of APE. On India, management said proceeds would partly fund the Bharti platform and initial acquisition, with residual proceeds still likely to add to free surplus, while the long-term goal is building a profitable life and health franchise.